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Review on TrueUSD by Leon Hart
In contrast to algorithmic stablecoins such as Basecoin or MakerDAO, which are…
In contrast to algorithmic stablecoins such as Basecoin or MakerDAO, which are protocol-based, TrueUSD is asset-backed. TrueUSD believes that while algorithmic options cater more towards crypto startups, asset-back tokens will be preferable to more traditional financial institutions. Stablecoins such as Tether also peg their cryptocurrency to the dollar, but the coin has become shrouded in controversy, with claims that the Tethers are not backed up with dollar reserves at a one-to-one ratio.
Pros
- TrustToken created TrueUSD to meet the strong demand we heard from traders to have a fully collateralized stablecoin,” TrustToken co-founder and CTO Rafael Cosman explained to VentureBeat. “TrueUSD’s rise to over $12 million market cap in less than two months since its launch demonstrates the value of a price-stable cryptocurrency that is truly redeemable for USD.”
Cons
- In contrast to algorithmic stablecoins such as Basecoin or MakerDAO, which are protocol-based, TrueUSD is asset-backed. TrueUSD believes that while algorithmic options cater more towards crypto startups, asset-back tokens will be preferable to more traditional financial institutions. Stablecoins such as Tether also peg their cryptocurrency to the dollar, but the coin has become shrouded in controversy, with claims that the Tethers are not backed up with dollar reserves at a one-to-one ratio.
